Britain’s Gambling Commission has issued a £170,000 fine to Taichi Tech-owned operator Fafabet for using unfair terms and conditions.

An investigation by the Commission found regulatory failures within the operator’s bonus terms for new casino promotions, including Fafabet claiming to “have the right at their own discretion to close accounts or forfeit winnings.”

The regulator concluded that Taichi Tech breached the fair and open licensing condition by including a discretionary term allowing the operator to close customer accounts or forfeit winnings without clear justification. 

Such terms lack transparency and may lead to unfair outcomes for consumers, said the Commission. 

“We expect all operators – regardless of their size or customer base – to comply with consumer protection legislation and ensure their terms and conditions meet regulatory standards,” said John Pierce, director of enforcement and intelligence at the Gambling Commission. “Licensed operators must ensure their terms are clear, fair, and transparent, so customers fully understand what to expect.”

The investigation also found failures relating to Fafabet’s anti-money laundering and social responsibility controls, including failures to effectively manage risk and implement adequate consumer protection measures.

Examples included some customers being able to gamble large sums within a short period of time, despite the operator holding limited customer information.

In certain cases, individuals exhibiting potential markers of harm, such as high-velocity spending over short periods, received insufficient customer interaction from the operator.

In addition, where safer gambling emails were sent but not acknowledged by the customer and concerning behaviour continued, there was no further follow-up or intervention by the operator.

Fafabet has acknowledged that it previously fell short of the standards expected by the Commission and has since taken steps to address these shortcomings. 

Alongside the £170,000 fine, Fafabet will also have to undergo an independent third-party audit to provide assurance of ongoing compliance with all relevant regulatory requirements.

Fafabet has been licensed in the United Kingdom since February 2021, and is also licensed in the Republic of Ireland.